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Mercedes Record 25% Discount Leads Shrinking China Margins: Cars

There has never been a better time to buy a Mercedes-Benz in China. The problem for luxury carmakers such as Daimler AG is that the incentives are likely to get even bigger.

Mercedes dealers are offering record markdowns of 25 percent on high-end models such as the S300 sedan, according to data stretching back to 2009 at cheshi.com, which tracks prices at more than 3,000 Chinese dealerships. Bayerische Motoren Werke AG’s 7-series and Audi AG’s A8Ls sell for 20 percent below sticker prices, waiting lists have vanished and salesmen are dangling perks ranging from free iPhones to Hermes-bag coupons.